BRAC Micro Enterprise Regional Practice Test Pt 2

Parker needs money to expand the warehouse. By expanding the warehouse the company will be able to carry a lot more inventory, which will make it possible for them to fill more customer orders much more quickly. This expansion will cost approximately $150,000 in construction costs. Purchasing the additional inventory will cost $50,000. Over the next two years Parker believes this will increase sales 20% and profitability 25%. What type of financing should Parker seek?

• online credit

• credit card credit

• bank credit

• none, the numbers indicate this will not be a profitable outcome

Pricing strategies may include:

• maximizing debt through effective loan applications

• completing audited financial statements

• maximizing revenues for different products using different price points

• maximizing units sold through effective advertising themes

Revenue per unit minus cost of goods sold equals:

• unit breakeven

• contribution margin

• income pro forma

• debt service

Robin has been working throughout the week to get ready for the store opening on Friday. The tiles for the entryway were not delivered on time, but Robin took the company van and picked up the tiles at the vendor's warehouse. When the utility did not connect the electricity on Monday, Robin stayed on hold for an hour before finding a supervisor who sent a utility tech right away. The type of entrepreneurial behavior that Robin has been exhibiting over the past week can best be described as:

• independence

• optimism

• determination

• computer literacy

Self-discipline can best be defined as:

• perspective

• persistence

• prediction

• prescription

Successful entrepreneurs can be described as:

• unfriendly

• change agents

• reactive

• passive

The financial term liability refers to:

• a weakness in the company's financial structure

• the ability of the company to raise funds

• the ability of the company to secure loans

• a debt or a loan a company must repay

The fixed costs of a business:

• must be different each month

• include the cost of production materials

• are the same no matter how many customers the business services

• must exceed variable costs

The geauxBIZ portal is:

• a Louisiana Workforce Commission small business owners use to hire employees

• a Louisiana Secretary of State website entrepreneurs use to register a company

• a Louisiana Revenue website businesses use to pay taxes

• a joint state and federal website for filing IRS forms

The government agency that enables companies to register to do business in the state of Louisiana is:

• Department of Commercial Licenses

• Secretary of State

• Workforce Commission

• Internal Revenue Service